A Flagstaff Meadows home served by Utility Source, LLC owes $85.26 a month in water and sewer minimum charges before anyone uses a single gallon. That figure comes from the most recent rate order the Arizona Corporation Commission approved for the company. It is the key number for a Bellemont buyer, because it means the monthly utility cost is mostly set by the address. Watering habits change it far less.
North Bellemont and South Bellemont run on different water systems with different cost structures. The utility that serves the north side is now also a co-applicant on the next 80 lots near the interchange. Any listing on either side of I-40 should be read with both facts in mind.
The bill at the median
In its October 2, 2020 decision, the ACC set the rates for a standard 3/4-inch residential meter on the Utility Source system. Water carries a $38.26 monthly minimum with no gallons included. After that, water costs $5.00 per 1,000 gallons for the first 3,000 gallons, $7.50 from 3,001 to 7,000, and $9.00 above 7,000. The commission kept wastewater rates where they already were: a $47.00 monthly minimum plus $4.91 per 1,000 gallons of residential water use.
The same order reported median household use of 3,351 gallons a month during its 2018 test year. At that usage, the bill breaks down like this:
| Charge | Amount at 3,351 gallons |
|---|---|
| Water monthly minimum | $38.26 |
| Water usage, first 3,000 gallons at $5.00 | $15.00 |
| Water usage, next 351 gallons at $7.50 | $2.63 |
| Sewer monthly minimum | $47.00 |
| Sewer usage, 3,351 gallons at $4.91 | $16.45 |
| Total before taxes and fees | $119.34 |
The sewer line matches the commission's own math. The ACC put the typical residential wastewater bill at $63.45 at median use. Water comes to $55.89. Of the roughly $119 total, $85.26 is fixed minimums, a little over 70 percent of the bill. The ACC described the sewer side the same way: 71.52 percent of residential wastewater revenue comes from the monthly minimum charge.
Why cutting water use saves so little
Run the same rate schedule at different usage levels. A household that cuts its use in half, to about 1,676 gallons, pays roughly $101.87. A household that doubles it, to about 6,700 gallons, pays roughly $160.94. Going from careful to heavy use adds about $59 a month. Even so, the careful household still pays about 85 percent of the median bill.
This explains a scene in Arizona Daily Sun coverage of the company's previous rate case, which ended with ACC Decision 75353 in December 2015. A homeowner said changes to a yard could only do so much to buffer against higher rates. With a rate design built mostly on minimums, that result follows almost automatically.
Size explains the rate design. A small utility has to cover its wells, tanks, treatment plant, and staff with revenue from a few hundred households. In that same Daily Sun story, then-ACC Chairman Susan Bitter Smith said Arizona has more than 400 small utilities, a number she called unusually high. In the 2018 test year, Utility Source's water system had two active wells, eight inactive wells, and two storage tanks holding 700,000 gallons in total. Those costs are mostly the same whether a household uses 2,000 gallons or 8,000.
A customer base that nearly doubled while rates held
The rate history follows the subdivision's history. Utility Source was started by Lonnie McCleve and Gary Bulechek, owners of the company that built the first two phases of Flagstaff Meadows in the early 2000s. They formed it to supply water and wastewater service to the new homes. In 2004, state and county agencies paused sales and building in the subdivision until the company received ACC certification. The ACC fined it $20,000 and found it would need several much deeper wells to obtain an adequate water supply designation. The ACC also found that the company's starting rates, modeled on the City of Flagstaff's, were too low to support its operations. By 2008, the average bill had risen to about $70 a month.
The 2020 order changed direction. The company did not ask for a total water revenue increase, and the commission left wastewater rates unchanged. Meanwhile, the customer base kept growing. Utility Source served 382 water customers in the 2018 test year. Its annual report for 2025 lists 650 single-family water customers in January and 653 in December, plus 661 wastewater services by year's end. The same report shows zero rate case expense for 2025. The docket filings from 2023 through October 2026 are labeled compliance filings under the 2015 decision, not new rate applications.
So the 2020 schedule is the latest approved rate set on record. Treat it as the starting point, and confirm a current bill directly with the utility. The ACC's own tariff page warns that posted tariffs may not be current.
The growth is visible on the ground. Capstone Homes lists its Flagstaff Meadows community as sold out. On August 11, 2026, Coconino County accepted the streets of Flagstaff Meadows Unit III, Phases 2A and 2B, into its road maintenance system. Solid Homes is selling Shadow Mountain Village Phase 2, an 84-homesite townhome community with plans from 1,600 to 1,818 square feet. When the county approved the earlier Shadow Mountain Village plat in 2019, one condition was an expansion of Utility Source's service area. The records reviewed for this post do not confirm whether that expansion has been approved, so buyers there should ask the builder which provider serves their lot.
South of the interstate, the owner carries the system
According to Coconino County's community assessment, Utility Source serves the North Bellemont subdivision of Flagstaff Meadows. South Bellemont properties use private wells or may be served by the small Bellemont Water Company. Both water companies draw from deep wells, and the Pilot Travel Center has a standpipe for hauled water. Sewer differs too. Flagstaff Meadows has its own treatment plant run by Utility Source. South Bellemont's on-site systems are mostly alternative designs, because the soil there is shallow, clay, and rock.
On a South Bellemont parcel with its own well and septic system, the household has no $85 monthly minimum to pay. In exchange, the owner pays for pumping, repairs, and system replacement directly. The county's 2019 Bellemont Area Plan lists expanded water and wastewater service in South Bellemont as a priority for commercial and industrial growth. Bellemont Water Company's ACC rate docket from 2008 was closed administratively in 2025, and no current residential rate schedule turned up for this post. If a listing says it is served by that company, ask the seller for recent bills.
The next 80 lots come with the utility attached
On May 19, 2026, the Coconino County Board of Supervisors voted 5–0 to approve a preliminary plat for Shadow Mountain Wells. The plan calls for 80 duplex lots on 11.2 acres on the north side of W Brannigan Park Road, west of the Pilot Travel Center. The applicants are the McCleve trust and Utility Source, LLC, through Tim Campbell of Finesse Properties. The Planning and Zoning Commission had recommended approval back in July 2021. Resolution 2026-23 attaches conditions to the approval that matter to anyone buying there later:
- The Arizona Department of Environmental Quality must approve the community water and wastewater systems, and the ACC must approve an expansion of Utility Source's service area. Both must happen before a final plat can be submitted.
- The Arizona Department of Water Resources must issue a water adequacy report, and the final plat must carry a note saying whether the supply was found adequate or inadequate.
- The developer must obtain a public report from the Arizona Department of Real Estate before selling any lots.
- The water system must be engineered to deliver minimum fire flows, and the developer must build an 8-foot FUTS path along the north edge.
Under A.R.S. § 45-108, an adequate supply means water that is continuously, legally, and physically available for at least 100 years, along with the financial capacity to build the facilities. ADWR sends its report to the state real estate commissioner and the county. The plat note will show which finding applies.
Roads are part of the same agreement. The development agreement calls for a $217,307.70 contribution toward traffic improvements on Shadow Mountain Drive, W Brannigan Park Road, and Hughes Avenue near the north side of the interchange. The agreement also lists an alternative to full cash payment, a fee of $2,716.34 per single-family building permit, though that clause names Shadow Mountain Village Phase II. These improvements are drawn from a November 2022 Bellemont traffic memo prepared for the county by Burgess and Niple. The county has agreed to pursue design and construction funding, and the agreement gives no construction schedule. The agreement also requires refunds, including any fees assessed to individual buyers, if the improvements are not in final design or construction within 25 years of the final payment.
What to pull for a Bellemont listing
- Provider: Utility Source, Bellemont Water Company, or a private well. This one answer determines most of the monthly utility cost.
- Twelve months of bills: Compare the minimum charges to the usage charges to see how much of each bill is fixed.
- Sewer type: a connection to the Flagstaff Meadows treatment plant, or an alternative on-site system.
- Plat notes and the ADRE public report: For newer subdivisions, look for the ADWR adequacy note.
- Per-permit fees: In new construction near the interchange, ask whether a traffic mitigation fee is included in the price.
FAQ
Are Utility Source rates going up soon? The 2025 annual report shows no rate case expense, and the recent docket filings are compliance filings. Ask the utility to confirm before you close.
Does the Pilot standpipe matter to homeowners? It does for South Bellemont properties that rely on hauled water. The county lists it as the area's water hauling point.
Is Shadow Mountain Wells selling yet? No. The project has preliminary plat approval only. It still needs state water and utility approvals and an ADRE public report before any lots can be sold.
A Bellemont home's monthly utility cost is usually settled by the utility serving the lot, so it should be checked before you make an offer. If you're comparing a Flagstaff Meadows townhome with a South Bellemont parcel on a private well, Karra Polder can help you gather the bills, plat notes, and system details for both and compare them side by side. Let's Connect.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
